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Minister's Message

As Minister of Transport, Infrastructure and Communities, I am pleased to present to Parliament Transport Canada’s Report on Plans and Priorities for 2011-2012.

This plan focuses on four main priorities: increase security for air passengers, air cargo and airport workers; create an oversight framework that will ensure Transport Canada’s legislation, regulations and regulatory initiatives are modern, streamlined and effective; assess the transportation policy framework’s ability to respond to emerging trends and challenges; and continue to improve governance within the Department.

Transport Canada’s focus remains the secure and efficient movement of people and goods domestically and internationally. In order to increase security for air passengers, air cargo and airport workers, we will continue to enhance the Air Cargo Security Program and to work with our international partners to advance mutual recognition. We also plan to develop a National Civil Aviation Security Program that will help increase our international and domestic partners’ confidence in the Canadian transportation system.

To address the high-risk areas of the transportation sector, such as growing traffic, competing environmental and economic demands, rapidly evolving technologies and the threat of terrorism, we are creating an oversight framework that will enable us to update our laws and regulations, sometimes with partner jurisdictions, to improve our effectiveness. More modern, responsive and flexible approaches to managing risks will benefit the Canadian transportation system and Canadians for many years to come by focussing efforts where they are needed most.

We are also assessing our transportation policy framework to ensure that Transport Canada is positioned to respond to emerging trends over the long term. We will identify and make necessary adjustments to our policy framework so that the transportation system can continue to meet the needs of Canadians across the country.

In order to attain high organizational performance and serve the public interest to the best of our capacity, we will continue to review our internal management practices. We will enhance our performance measurement framework to help measure our progress towards our departmental strategic outcomes. We will also continue to review our expenditure plans to ensure that our resources are directed to the highest priorities for Canadians.

I would like to thank the staff in all of the Department’s offices for their efforts and hard work. As Minister of Transport, Infrastructure and Communities, I am confident that we will meet our objectives and ensure that Canada’s transportation system continues to be recognized worldwide as safe, secure, efficient and environmentally responsible.

Section I - Departmental Overview

1.1 Summary Information

1.1.1 Raison d’être and Responsibilities

Transport Canada is responsible for the Government of Canada’s transportation policies and programs. While not directly responsible for all aspects or modes of transportation, the Department plays a leadership role to ensure that all parts of the transportation system work together effectively. Furthermore, the Canada Transportation Act requires the Department to report on the state of the national transportation system.

The Department’s vision of a sustainable transportation system is one that integrates and balances social, economic and environmental objectives. Our vision is guided by the following principles:

• highest possible safety and security of life and property guided by performance-based standards and regulations when necessary;
• efficient movement of people and goods to support economic prosperity and a sustainable quality of life based on competitive markets and targeted use of regulation and government funding; and
• respect for the environmental legacy of future generations of Canadians guided by environmental assessment and planning processes in transportation decisions and selective use of regulation and government funding.

Transport Canada is part of the Transport, Infrastructure and Communities portfolio. Under this portfolio, the Minister of Transport, Infrastructure and Communities administers over sixty statutes and heads a complex organizational structure that includes Transport Canada, Infrastructure Canada, Shared Governance Organizations (ex. nav Canada), Transportation Crown Corporations (ex. Great Lakes Pilotage Authority), Non-Transportation Crown Corporations (ex. Canada Post Corporation and Subsidiaries), and Administrative Tribunal/Agencies (ex. Transportation Appeal Tribunal of Canada).

These organizations contribute to Canada’s competitiveness by ensuring a vibrant transportation system to make the economy stronger; keeping our transportation system safe and secure; protecting the environment; and improving the quality of life in our cities and communities. Having these organizations grouped into one portfolio allows for an integrated decision-making process on transportation issues.

Establishing departmental business priorities to address operational and management gaps further strengthens this approach to integrated decision-making. Transport Canada identified the following three operational priorities and one management priority for 2011-2012:

• create an oversight framework that will ensure Transport Canada’s legislation; regulations and regulatory initiatives are modern, streamlined and effective;
• assess the transportation policy framework;
• increase security for air passengers, air cargo and airport workers; and
• continue to improve governance within Transport Canada.

These priorities are aligned with commitments undertaken by the Government of Canada stated in the 2010 Speech from the Throne.

The Government of Canada works in close partnership with provinces, territories, municipalities and other public and private sector groups to address common economic, environmental and social issues through sound transportation solutions. This contributes to economic prosperity since shared projects and programs create or protect jobs, and help move people and goods across the country and around the world.

For example, through Canada’s National Policy Framework for Strategic Gateways and Trade Corridors, Transport Canada is working in partnership with other federal departments and agencies, provinces and territories, municipalities, and private sector stakeholders to implement the three gateway strategies aimed at strengthening Canada’s competitiveness in global commerce. These strategies involve joint investments in strategic trade-related transportation infrastructure and collaborative activities to address policy, legislative, regulatory, operational and governance issues that impede the efficiency and reliability of the transportation system. Through these collaborative and coordinated initiatives, Canada is successfully seizing its geographic and transportation advantages to expand international commerce opportunities, especially with other key trading partners and new emerging markets.

1.1.2 Strategic Outcomes

Transport Canada organizes itself around four principle business lines, with program and support groups working at headquarters in Ottawa and in locations across Canada. Headquarters is made up of four groups: Policy, Programs, Safety and Security, and Corporate Services. Regional directors general head Transport Canada's five regions, Pacific, Prairie and Northern, Ontario, Quebec and Atlantic, and are responsible for delivering national departmental programs and services in their respective regions.

The Policy on Management, Resources and Results Structures supports the development of a common, government-wide approach to the collection, management and reporting of financial and non-financial information on program objectives, performance and results. Complementing this departmental performance management and reporting regime, the Government of Canada has adopted a whole-of-government framework for reporting to Parliament on progress made as a nation. This framework maps the financial and non-financial contributions of departments, agencies, and Crown corporations receiving appropriations to sixteen high-level Government of Canada outcome areas within the following four Government of Canada spending areas: Economic, Social, International, and Government Affairs.[1]

In general, departments, agencies and Crown corporations contribute to all of these sixteen outcome areas. However, their individual mandates, responsibilities and strategic objectives contribute specifically to a few Government of Canada outcomes.

Transport Canada fulfills its mandate, responsibilities and objectives through the following four Strategic Outcomes:

1. An Efficient Transportation System;
2. A Clean Transportation System;
3. A Safe Transportation System; and
4. A Secure Transportation System.

These four strategic outcomes specifically contribute to five Government of Canada outcomes, which are: A Strong Economic Growth, An Innovative and Knowledge-based Economy, A Clean and Healthy Environment, A Fair and Secure Marketplace, and A Safe and Secure Canada. Section 1.1.3 of this report explains how Transport Canada’s strategic outcomes and program activities contribute to these outcomes areas.

1. Strategic Outcome: An Efficient Transportation System

An efficient transportation system contributes to the quality of life for all Canadians and supports three Government of Canada outcome areas: A Fair and Secure Marketplace, Strong Economic Growth and An Innovative and Knowledge-based Economy.

Transport Canada promotes an efficient transportation system in Canada. We:

• modernize marketplace frameworks[2] so that the transportation sector can adapt, innovate and remain competitive;
• develop and implement gateways and corridors[3] initiatives;
• ensure the renewal of federal transportation infrastructure;
• encourage innovation in the transportation sector; and
• partner with provinces, territories, municipal governments, and public and private sector entities in various transportation initiatives.

2. Strategic Outcome: A Clean Transportation System

A clean transportation system contributes to the health of all Canadians and supports the Government of Canada outcome: A Clean and Healthy Environment.

Transport Canada promotes a clean transportation system in Canada. We:

• advance the federal government's Clean Air Agenda in the transportation sector and complement other federal programs designed to reduce air emissions to protect the health of Canadians and the environment for generations to come;
• protect the health of Canadians and the marine environment by reducing the pollution of water from transportation sources; and
• fulfill Transport Canada’s responsibilities in working towards a cleaner and healthier environment with regard to its own operations.

3. Strategic Outcome: A Safe Transportation System

A safe transportation system contributes to the safety of both the travelling and non-travelling public and supports the Government of Canada outcome: A Safe and Secure Canada.

Transport Canada promotes a safe transportation system in Canada. We:

• develop safety regulations and oversee their implementation for the air, rail, and marine modes;
• monitor motor vehicle and equipment manufacturers' compliance with motor vehicle safety regulations;
• manage programs to support safety-related investments at regional/small airports, protect navigable waterways, provide certificates and license to individuals, aircraft and vessels; and
• provide air transport services to support Transport Canada and other government department operations.

4. Strategic Outcome: A Secure Transportation System

A secure transportation system contributes to the security of all Canadians and supports the Government of Canada outcome: A Safe and Secure Canada.

Transport Canada promotes a secure transportation system in Canada. We:

• develop policies and programs that respond to emerging security risks while keeping Canada competitive;
• develop and enforce transportation security regulations; and
• work with domestic and international partners towards a shared and effective transportation security agenda.

1.1.3 Program Activity Architecture

This Report on Plans and Priorities is aligned with Transport Canada's Management, Resources and Results Structure. This structure provides a standard basis for reporting to Parliamentarians and Canadians on the alignment of resources, program[4] activities and expected results.

As illustrated below, Transport Canada’s Program Activity Architecture includes fifteen program activities, which contribute to achieving the four departmental strategic outcomes. The sixteenth program activity, Internal Services, supports all four strategic outcomes.

Figure 1: Transport Canada Program Activity Architecture

[Text Version]

1.1.4 Transport Canada's Contribution to the Federal Sustainable Development Strategy

The Federal Sustainable Development Strategy aims to fulfill the requirements of the Federal Sustainable Development Act passed by Parliament in 2008. The first Strategy brings together environmental goals, targets and implementation strategies which have been created through the normal course of government decision-making. The Strategy also establishes a framework for sustainable development planning and reporting with three key elements:

• an integrated, whole-of-government picture of actions and results to achieve environmental sustainability;
• a link between sustainable development planning and reporting and the Government’s core expenditure planning and reporting system; and,
• a measurement, monitoring and reporting regime in order to track and report on progress to Canadians.

As a participant in the Federal Sustainable Development Strategy, Transport Canada is committed to environmental sustainability and strategic environmental assessment as an integral part of its decision-making processes. Transport Canada’s contributions are further explained in Sections II, III and IV of this report with the following tags:

Theme I – Addressing Climate Change and Air Quality
Theme II – Maintaining Water Quality and Availability
Theme III – Protecting Nature
Theme IV – Shrinking the Environmental Footprint – Beginning with Government

To learn more about Transport Canada’s activities to support sustainable development, please visit our website and for complete details on the Federal Sustainable Development Strategy, please visit Environment Canada's website.

1.2 Planning Summary

1.2.1 Financial Resources

The following financial resources table provides a summary of the total planned spending for Transport Canada for the next three fiscal years. For more detailed information on planned spending, including adjustments, please visit Transport Canada’s website on Planned Spending.

Financial Resources ($ millions)

2011-12	2012-13	2013-14
1,590	2,121	1,611

1.2.2 Human Resources

The following human resources table provides a summary of the total planned human resources for Transport Canada for the next three fiscal years.

Human Resources (FTEs)

2011-12	2012-13	2013-14
5,346	5,253	5,203

1.2.3 Summary Tables by Strategic Outcome and Internal Services

Strategic Outcome 1: An Efficient Transportation System

Performance Indicator	Targets
Transportation sector productivity level (Index)	Increase by 2.5 percent to 5 percent relative to 2009 baseline (Productivity Index[5] > 113 in 2014)
Transportation sector cost level (Index)	Growth in unit costs does not exceed 11 percent over a 5-year horizon (Cost Index < 111 in 2014)

Program Activity	Forecast Spending ($ millions) 2010-11	Planned Spending ($ millions)			Direct Contribution to Government of Canada Outcomes
		2011-12	2012-13	2013-14
Transportation Marketplace Frameworks	9	9	9	9	A fair and secure marketplace
Gateways and Corridors	260	544	1,173	670	Strong economic growth
Transportation Infrastructure	287	334	261	253	Strong economic growth
Transportation Innovation	14	14	9	9	An innovative and knowledge-based economy
Total Planned Spending*	570	901	1,452	941

*Due to rounding, column totals shown may not be exact. Amounts are net of respendable revenue.

Strategic Outcome 2: A Clean Transportation System

Performance Indicator	Targets
Transportation sector greenhouse gas emissions[6] (tonnes of CO2[7] equivalent)	Greenhouse gas emission levels from the transportation sector consistent with Government of Canada targets in "Turning the Corner"
Percentage of transportation sector air pollutants reduction	Level of air pollutants from the transportation sector reduced consistent with targets to be established under the "Clean Air Agenda"

Program Activity	Forecast Spending ($ millions) 2010-11	Planned Spending ($ millions)			Direct Contribution to Government of Canada Outcomes
		2011-12	2012-13	2013-14
Clean Air from Transportation	19	5	3	3	A clean and healthy environment
Clean Water from Transportation	8	6	3	3
Environmental Stewardship of Transportation	43	7	6	6
Total Planned Spending*	71	18	12	12

*Due to rounding, column totals shown may not be exact. Amounts are net of respendable revenue.

Strategic Outcome 3: A Safe Transportation System

Performance Indicator	Targets
Number/rate of accidents or fatalities by mode	Maintain or improve accident/fatality rates by mode, based on each mode's strategic objectives

Program Activity	Forecast Spending ($ millions) 2010-11	Planned Spending ($ millions)			Direct Contribution to Government of Canada Outcomes
		2011-12	2012-13	2013-14
Aviation Safety	223	253	253	252	A safe and secure Canada
Marine Safety	86	74	69	68
Rail Safety	33	38	37	37
Road Safety	42	24	22	25
Transportation of Dangerous Goods	15	13	13	13
Total Planned Spending*	398	402	394	396

*Due to rounding, column totals shown may not be exact. Amounts are net of respendable revenue.

Strategic Outcome 4: A Secure Transportation System

Performance Indicator	Targets
Number of Canadian regulatory framework adjustments	Two
Percentage (%) of Canadians reporting to be confident in the security of the transportation system	Maintain or improve confidence in the security of the transportation system, based on the strategic objectives of each mode

Program Activity	Forecast Spending ($ millions) 2010-11	Planned Spending ($ millions)			Direct Contribution to Government of Canada Outcomes
		2011-12	2012-13	2013-14
Aviation Security	49	51	49	47	A safe and secure Canada
Marine Security	21	22	19	19
Surface and Intermodal Security	7	7	6	6
Total Planned Spending*	77	80	74	72

*Due to rounding, column totals shown may not be exact. Amounts are net of respendable revenue.

Internal Services

Performance Indicator	Targets
Satisfaction rate of Internal Services clients	Satisfaction rate equal or superior to 85 percent

Internal Service	Forecast Spending ($ millions) 2010-11	Planned Spending ($ millions)			Contribution to Transport Canada Strategic Outcomes
		2011-12	2012-13	2013-14
Internal Services	233	189	189	189	An efficient transportation system A clean transportation system A safe transportation system A secure transportation system

Total Department

Program Activity	Forecast Spending ($ millions) 2010-11	Planned Spending ($ millions)			Alignment to Govovernment of Canada Outcomes
		2011-12	2012-13	2013-14
All program activities	1,349	1,590	2,121	1,611	A fair and secure marketplace Strong economic growth An innovative and knowledge-based economy A clean and healthy environment A safe and secure Canada

1.3 Contribution of Priorities to Strategic Outcomes

Transport Canada identified three operational priorities[8] and one management priority[9] for 2011-2012. These priorities are aligned with the Department’s Corporate Risk Profile[10]. Each priority relates to one or more of Transport Canada's Strategic Outcomes, which collectively describe our mandate and core business. The 2011-2012 operational and management priorities are aligned with commitments undertaken by the Government of Canada.

The Department’s priorities will strengthen our governance, provide strategic direction, ensure internal coherence and corporate discipline, and support our strategic outcomes to deliver results to Canadians. The departmental priorities are described in more details in the following tables.

This report labels first-time priorities as "new", priorities committed to in the first or second fiscal year prior to this report as “previously committed to”, and older commitments as "ongoing".

Operational Priority	Type	Links to Strategic Outcome(s)	Description
Create an oversight framework that will ensure Transport Canada’s legislation, regulations and regulatory initiatives are modern, streamlined and effective	New	All Strategic Outcomes	Why is this a priority? Growing traffic, competing environmental and economic demands, rapidly evolving technologies and the threat of terrorism demand improvements to existing regulatory tools to benefit Canadians. Setting regulatory priorities will ensure that we address high-risk areas of the transportation sector first. Updating federal laws and regulations, sometimes with partner jurisdictions, will keep us effective. These changes will provide Canadians with a performance-based regulatory framework for transportation that is responsive, flexible, effective and modern, as required by the Cabinet Directive on Streamlining Regulation. To meet this priority we plan to: develop a risk-based regulatory priority management system; contribute to the Government of Canada efforts to improve the federal regulatory system, including approaches that consider economic, environmental and safety and/or security considerations; and assess the regulatory and compliance implications of legislation and regulations earlier in the policy development process.

This departmental priority supports the agenda of the Government of Canada as outlined in the Speech from the Throne 2010.

"[…]our strategy for the economy must create the conditions for continued success in the industries that are the foundation for Canada’s prosperity and support thousands of communities, both rural and urban."

Operational Priority	Type	Links to Strategic Outcome(s)	Description
Assess the transportation policy framework	New	All Strategic Outcomes	Why is this a priority? Canada’s transportation sector contributes greatly to the quality of life that Canadians enjoy. It is vital to our economic success and long term prosperity. In recent years, the transportation environment in Canada has evolved, posing new challenges and opportunities for the sector. An assessment of emerging trends and challenges will determine whether the transportation sector and the Department’s current policy framework are positioned to respond over the long term. To meet this priority we plan to: assess the emerging trends, challenges and opportunities to determine whether our current policy framework remains relevant for Canada’s transportation sector; and identify any adjustments required to the policy framework to ensure that we can continue to meet the needs of the transportation sector and Canadians over the long term.

This departmental priority supports the agenda of the Government of Canada as outlined in the Speech from the Throne 2010.

“Canada is poised to emerge from the recession powered by one of the strongest economies in the industrialized world. Therefore, our attention must also encompass the new measures Canada needs for success in the modern economy […] To succeed in the global economy, Canada must keep step as the world races forward.”

Operational Priority	Type	Links to Strategic Outcome(s)	Link to Program Activities:	Description
Increase security for air passengers, air cargo and airport workers	Previously Committed to	A Secure Transportation System	Air Cargo Security Major Crown Project, Aviation Security Oversight, Aviation Security Regulatory Framework, Airport Policing Assistance	Why is this a priority? Canadians expect a secure transportation system using innovative ways to manage risk while protecting their rights and privacy. Our international and domestic partners must be confident that the Canadian transportation system will not be used as a means to threaten international and domestic trade and travel. Transport Canada supports the secure and efficient movement of people and goods, against a backdrop of globalization, terrorism and national security challenges. To meet this priority we plan to: continue to enhance the Air Cargo Security Program; continue to work with international partners to advance mutual recognition; and develop a National Civil Aviation Security Program

This departmental priority supports the agenda of the Government of Canada as outlined in the Speech from the Throne 2010.

“Our Government will take steps to safeguard Canada’s national security. It will make travel by air safer by employing the latest screening practices and detection technologies for passengers and cargo.”

Management Priority	Type	Links to Strategic Outcome(s)	Description
Continue to improve governance within Transport Canada	Previously Committed to	All Strategic Outcomes	Why is this a priority? In order to attain high organizational performance and serve the public interest to the best of its capacity, Transport Canada examines its internal management practices on an on-going basis and adapts those practices to the needs of its programs and to its evolving environment. Accordingly, the organizational support to the different components of the Department is strengthened, resulting in improved program and service delivery to Canadians. Internal management refers to all the interrelated activities that are used to coordinate, direct, and monitor an organization in order to reach its objectives. This includes governance, which refers to how an organization makes and implements decisions. To meet this priority we plan to: improve our capacity to optimize the use of financial and human resources by continuing to evolve our budget management framework to enable improved resource allocation and reallocation decisions to support core program integrity, priorities and effective performance results; enhance the Performance Measurement Framework[11] linked to our Program Activity Architecture to ensure Transport Canada has more outcome oriented performance indicators and an online performance management system that will help to measure progress towards strategic outcomes, and demonstrate how programs and services benefit Canadians; and improve our capacity to effectively and efficiently administer transfer payments, monitor and provide guidance on best practices, departmental standards and federal policies.

This departmental priority supports the agenda of the Government of Canada as outlined in the 2010 Speech from the Clerk of the Privy Council.

“Our renewal efforts are based in four key areas: integrated planning, recruitment, employee development and workplace renewal […] Integrated planning is a core business practice that aligns goals, resources and results. We must plan to identify and close resource gaps, improve our advice and service to Canadians, and reduce unnecessary costs, which is critical in the current period of fiscal restraint.”

1.4 Risk Analysis

1.4.1 Risk Management Approach

As part of its risk management activities, Transport Canada conducts an annual review of risk factors that may have an impact on its ability to achieve its strategic outcomes. Risk factors change over time as a result of modifications in the Department’s mandate, its strategic outcomes or priorities and other significant factors such as changing economic, energy, security, political and environmental conditions that directly impacts the Department. The identification of risks and the development of mitigation measures and controls in managing them contribute to making decisions related to setting departmental priorities, planning, allocating resources, developing policies, managing programs and reporting on performance.

1.4.2 Operating Environment

Canada’s transportation network is vast with 38,000 kilometres of national and regional highways, 20 million road vehicles, 243,000 kilometres of shoreline, 1,500 ports, 48,000 ships, 33,000 civil aircrafts, 1,600 aerodromes, 48,000 kilometres of rail and 2,800 locomotives. Furthermore, the transportation system is a complex structure that includes multiple jurisdictions of government interacting with private sector stakeholders and consumers. In years ahead, emerging global pressures such as global restructuring, demographic shifts, natural resources scarcity, financial constraints, environmental pressures, and general uncertainty and complexity will present a number of new challenges for Canada and our transportation system.

1.4.3 Key Risks Areas and Risk Responses

Transport Canada has identified four key risk areas that could impact its ability to achieve its strategic outcomes. For each area, a risk statement describes the challenge Transport Canada faces followed by a brief description of the main risk factors and main risk responses we will put in place to manage the risk.

Transportation System Efficiency: Transport Canada may not be able to sufficiently influence the efficiency and competitiveness of Canada’s transportation system.

The transportation system in Canada is operated under multiple public and private sector jurisdictions. Canadians rely on the transportation system to move people and goods across vast distances and to world markets by air, sea and land. The transportation system, therefore, needs to be safe, secure yet efficient and reliable. Risk factors include finding the appropriate balance between the requirements of the national transportation system and expectations of provincial, territorial and municipal jurisdictions and the private sector; tensions in third party labour-employer relationships that impact the transportation system; tensions between users and providers of transportation services; increasingly limited public funds; aging infrastructure; constrained uptake of transportation innovation; and evolving international direction related to environmental issues and climate change.

We will review our transportation policy framework to ensure that we can continue to meet the needs of the transportation sector. We will foster innovation in the transportation sector by partnering with stakeholders to facilitate forward looking solutions, improve technology applications and enhance transportation research capacity to help identify emerging trends and opportunities, and address challenges facing the transportation system. We will develop and support Intelligent Transportation Systems projects to increase Canadian capacity to use and share technology with major trading partners.

Oversight Effectiveness and Efficiency: Transport Canada’s oversight of the national transportation system may not be sufficiently flexible and adaptable to address ever-changing conditions.

As a federal regulator and funding partner, Transport Canada requires that its strategic and other policy, program and regulatory mechanisms be responsive to today’s requirements, aligned with on-the-ground operational realities, international trends and developments, and above all meet the needs of Canadians. The risk factors include the difficulty in ensuring the regulatory framework remains current; the inability to keep information updated; and the challenges to ensure that internal governance and an oversight framework keep pace with the transportation environment. Also, Transport Canada may lack the right kind of tools and skills development for its inspectors, policy makers, program delivery staff as well as third-party suppliers and service providers.

We will create an oversight framework that will ensure our legislation, regulations and regulatory initiatives are modern, streamlined and effective by developing a risk-based regulatory priority management system, contribute efforts towards improving the regulatory system and assessing compliance. For example, surveillance training will be implemented for all inspectors in order to meet industry compliance, to promote continuous improvement and to develop and modernize national inspection standards and tools that are risk-based and harmonized with common international standards.

Security Threat/Incident Response Capability: Transport Canada may not always be in a position to respond to a major transportation security threat or incident in an effective and timely manner.

There are multiple players affecting transportation security. International and public confidence in the security of Canada’s transportation infrastructure is critical. Risk factors include a lack of clarity in roles and responsibilities in protocols and communication channels with third party organizations on which the Department relies for intelligence and time-sensitive information; the level of understanding by other departments of Transport Canada’s role in transportation security and intelligence; challenges in managing the complexity of security events of significance both nationally and internationally; and evolving requirements between the Department and third parties.

We will increase security for air passengers, air cargo and airport workers through our continued work to harmonize our security framework with those of our international partners, enhance the Air Cargo Security Program and develop a National Civil Aviation Security Program. For example, we will develop measures for security of transportation of dangerous goods by rail and trucking and implement measures to strengthen security of higher risk international bridges and tunnels. We will also enhance departmental, interdepartmental and stakeholders communications channels and protocols.

Change Management: Transport Canada may not have the capacity to manage change efficiently in its departmental culture, systems and controls.
The effective management of change and the pace of change contribute to Transport Canada’s ability to achieve its strategic outcomes. Some key risk factors include changing demographics; the impact of rethinking and implementing a strategic planning framework to better support Government of Canada objectives through its policies, programs and regulations; and building synergy and cohesion between a new governance structure and current functional and regional practices while enabling results-based management.

We will continue to improve our governance by improving our capacity to optimize the use of financial and non-financial resources; enhancing our performance measurement framework to better support Government of Canada objectives; and building synergy and cohesion between new governance structures and functional and regional practices while enabling results-based management.

1.5 Expenditure Profile

In fiscal year 2011-2012, Transport Canada plans to spend $1,590 million to meet the expected results of its programs activities and contribute to its strategic outcomes. This represents a net increase in spending of $241 million over the 2010-2011 forecast spending level of $1,349 million.

The difference is related primarily to a planned spending increase of $215 million in the Gateways and Corridors Program Activity and specifically, the Gateways and Border Crossings Fund, the Asia-Pacific Gateway and Corridor Transportation Infrastructure Fund and the Detroit River Crossing Major Crown Project. There is also a planned spending increase of $50 million for the Airports Capital Assistance Program. The net increase in spending is offset in part by declines in spending in various other programs.

1.5.1 Departmental Spending Trend

Figure 2: Spending Trend for Transport Canada

[Text version]

Figure 2 shows Transport Canada’s expenditures (actual, forecast and planned) from 2007-2008 to 2013-2014. The trend shows an increase in spending from $836 million in 2007-2008 to $1,040 million in 2008-2009, a small decrease to $1,012 million in 2009-2010 and an increase to a forecast of $1,349 million in 2010-2011. The increased spending over this period is attributable to some of the Department’s major initiatives including the Asia Pacific Gateway and Corridor Initiative and the Gateways and Border Crossings Fund.

1.5.2 Allocation of Funding by Strategic Outcome and Internal Services

Figure 3 displays the allocation of funding according to Transport Canada’s four strategic outcomes, as well as the program activity related to Internal Services. For more detailed information about Transport Canada’s spending including adjustments following Main Estimates and non-respendable revenues, see Transport Canada's website.

Figure 3: Allocation of 2011-2012 Funding by Strategic Outcome and Internal Services

Strategic Outcomes (and Internal Services)	Forecast Spending 2010-2011 ($ millions)	Planned Spending 2011-2012 ($ millions)	Planned Spending 2012-2013 ($ millions)	Planned Spending 2013-2014 ($ millions)
An Efficient Transportation System	570	901	1,452	942
A Clean Transportation System	71	18	12	12
A Safe Transportation System	398	402	394	396
A Secure Transportation System	77	80	74	72
Internal Services	233	189	189	189
Total*	1,349	1,590	2,121	1,611

*Due to rounding, columns may not add to the totals shown. Amounts are net of respendable revenue.

Figure 4: Allocation of 2011-2012 Funding by Strategic Outcome and Internal Services in Percentage

[Text Version]

As shown in Figure 4, Transport Canada’s planned spending for 2011-2012 is allocated primarily to the Efficient Transportation System Strategic Outcome. As described in Section 1.5 of this report, this is mostly due to spending in the Gateways and Corridors Program Activity.

1.5.3 Voted and Statutory Items

For information on Transport Canada’s votes and statutory expenditures, please visit the 2011-2012 Main Estimates publication located on the Treasury Board of Canada Secretariat website.

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